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9 July 2002
Oil-for-Food Background Information


Weekly Update

(29 June – 5 July 2002) 

There were five loadings from the two authorized terminals of Mina al-Bakr and Ceyhan under the United Nations oil-for-food programme in the week ending 5 July, totaling 6.3 million barrels of oil – down from the previous week’s total of 8 million barrels. Of these, 3 loadings were from Mina al-Bakr, with 4.7 million barrels of oil and two loadings from Ceyhan, with 1.6 million barrels.  The week’s exports netted an estimated €152 million (euros) or $150 million in revenue.  The average price of Iraqi crude oil was, approximately €24.20 or $23.80 per barrel.  

There are now 123 oil purchase contracts in current phase XII of the programme, including 4 new contracts approved by the United Nations oil overseers during the week in review.  The quantity of oil approved for export under those contracts corresponds to 245.7 million barrels, of which 128.9 million barrels are for Basrah light and 116.8 million barrels for Kirkuk crude. So far in this phase, Iraq has exported 36 million barrels of oil for an estimated revenue of €851 million or $847 million.  Phase XII runs from 30 May to 25 November 2002. 

The continuing revenue shortfall has left 1074 humanitarian supply contracts, worth about $2.2 billion, although approved by the United Nations, lacking in funds. The affected sectors are:  food handling with $348 million; food with $347 million; electricity with $345 million; housing with $303 million; agriculture with $298 million; health with $183 million; telecommunication and transportation with $182 million; water and sanitation with $122 million; and education with $112 million. 

Since the beginning of the programme on 10 December 1996, Iraqi oil exports of more than 3 billion barrels have generated an estimated revenue of some $38.6 billion and €18.4 billion ($16.4 billion).  The humanitarian programme receives 72 per cent of the oil proceeds, with 59 per cent allocated to the 15 central and southern governorates and 13 per cent to the three northern governorates. To date, some $36 billion worth of contracts for the purchase of various humanitarian supplies and equipment have been both approved by the Security Council’s 661 sanctions committee and “fast-tracked” by the Office of the Iraq Programme (OIP), including about $3.2 billion worth of oil industry spare parts and equipment.  About $23 billion worth of supplies and equipment have been delivered to Iraq, including $1.4 billion worth oil spare parts and equipment, while another $10 billion worth of supplies and equipment, for which funds have been available, are in the production and delivery pipeline, including $1.7 billion worth of oil industry equipment.  

During the week, the 661 Committee released from hold 17 contracts worth $50 million, while placing on hold 12 new contracts worth $24.6 million.  

Paragraph 18 of the new set of procedures for the processing and review of contracts for humanitarian supplies and equipment under Security Council resolution 1409 (2002) requires that contracts currently on hold be divided into two categories.  The first category would comprise contracts that contain “dual use” item(s), as determined by the United Nations Secretariat experts, which will be returned to the submitting Mission or United Nations agency for possible re-submission under the new procedures.  The second category would include all other contracts currently on hold and will be re-circulated by OIP under the new procedures.  It is foreseen that upon the completion of these processes, there will no longer be contracts on hold.


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Produced for media and public information – not an official United Nations Document
For further information please contact Hasmik Egian, OIP - NY, 1.212.963.4341